TAIPEI (Taiwan News) — The Ministry of Labor said Wednesday that workers on reduced hours or shifts in nine industries will be eligible for monthly subsidies of up to NT$12,100 (US$404), retroactive to Aug. 1.

The MOL said Trump’s reciprocal tariffs could affect 42,000 domestic workers, prompting it to expand subsidies to sectors ranging from automotive to machine tool manufacturing, per CNA.

Minister of Labor Hung Sun-han (洪申翰) said domestic industries face twin pressures from US tariffs and an appreciating Taiwan dollar. The new subsidies prioritize workers’ rights and aim to prevent job losses. Hung also announced that the “Recharge Program for Workers” will increase wage subsidies from 50% to 70%.

For example, if a worker earning NT$45,800 per month were furloughed to the minimum wage of NT$28,590, the monthly loss of NT$17,210 could be partially covered by the NT$12,100 subsidy. The remaining NT$5,110 could be offset through the training program’s NT$190-per-hour rate, resulting in no wage loss.

According to MOL employment data, 1.05 million workers in the nine industries qualify for the program, though only 2,761 are currently on reduced hours. Not all businesses in these sectors export to the US, the ministry noted.

To qualify, employees must agree with their employer to reduce working hours for at least 30 days and register with local labor authorities. They must then apply to the Workforce Development Agency within 90 days of the reduction period. Approved applicants can claim subsidies for up to six months.